The US Department of Treasury, the Department of Energy, and the Internal Revenue Service (IRS) have unveiled new guidelines pertaining to the Inflation Reduction Act (IRA), a move aimed at fortifying energy security and promoting manufacturing and clean energy investments in coal communities.
In a follow-up to the launch of the expanded Qualifying Advanced Energy Project Credit program, governed by section 48C of the Internal Revenue Code, earlier this year, the US Department of Treasury and the IRS have now released comprehensive guidance offering additional details on the application process and technical specifications for the program.
Interested parties looking to apply for the program will be required to submit concept papers beginning on June 30th, outlining their proposed projects. Following a favorable review, applicants will be encouraged to submit a full application.
Under the IRA, a total of $10 billion in fresh funding has been allocated for the Qualifying Advanced Energy Project Credit program. Congress has mandated that a minimum of $4 billion be reserved specifically for projects in communities affected by the closure of coal mines or the retirement of coal-fired power plants. The initial round of funding will incorporate $4 billion, with approximately $1.6 billion earmarked for projects in these designated coal communities.
In a further development, the US Department of Treasury and the IRS have also released a Notice of Proposed Rulemaking (NPRM) for the Low-Income Communities Bonus Credit program. The NPRM outlines the application process and provides technical guidance for the program, which aims to provide an investment tax credit boost of up to 20 percentage points for solar and wind energy projects generating a maximum output of less than 5MW and serving low-income communities or populations.
Furthermore, the US Department of Treasury and the IRS have announced that final guidance pertaining to the 2023 program will be made available prior to the opening of applications later this year.
